Another Private Bid Rig Suit Against MMC, Insurers

Another Private Bid Rig Suit Against MMC, Insurers

By Daniel Hays

NU Online New Service, Jan. 25, 8:54 p.m. EST?A Massachusetts attorney filed a prospective class action in federal court today charging Marsh & McLennan raised the cost of customers' insurance coverage by rigging bids and taking kickbacks from four major insurers.[@@]

Robert J. Bonsignore of Medford, Mass., said, in addition to seeking reimbursement of overcharges for consumers, the suit seeks an injunction to stop illegal activity, punitive damages and he hopes it will force the ouster of all the companies' top management.

The suit is the latest private action filed since New York Attorney General and other agencies began investigating the companies. Mr. Spitzer in October filed a civil suit against the companies alleging they engaged in bid rigging violating state anti-trust law.

Beside MMC, the parent of Marsh brokerage, the Massachusetts action names American International Group, Ace Ltd., Hartford Financial and MetLife Inc. as defendants.

Mr. Bonsignore, a partner at Bonsignore & Brewer, said the single named plaintiff representing consumers, whom he alleges were victimized, is Brendan McCush, a Boston resident who was sold auto insurance directly by an MMC outlet.

The suit filed in U.S. District Court in Boston alleges the defendants violated anticorruption, consumer-protection and antitrust laws.

Marsh, in a November Securities and Exchange Commission filing reported 15 prospective class actions had been filed against it.

Executives at the firms, he said, "need to get the corporate death sentence" and he hopes his suit will prompt their boards to oust them. The companies involved had no immediate comment.

Mr. Bonsignore said as part of his litigation he will seek to force admissions from the companies that rate increases for consumers "were attributable to these fraudulent schemes."